ABSTRACT
After studying this chapter, you should have developed an appreciation of
1. The manner in which cash budgeting represents an important tool in
cash management
2. The reasons profit is not the same as cash
3. Factors that need to be considered when extending credit to a customer
4. The role of an accounts receivable aging schedule in credit management
5. How the economic order quantity (EOQ) can inform purchasing
decisions
6. When to take advantage of a supplier’s offer of a discount for early
payment
7. The risk/return trade-off apparent in short-vs. long-term financing of
current assets.
